Double click this layer in layer window to unflatten it. Double click the layer to open layer style window. Apply layer style with the settings shown.

Using custom shape tool create a preset 5 pont star shape.

Populate the background with stars of different sizes.

Rasterize the layer. Hide the background layer. Create a rectangular selection of the whole area using rectangular marquee tool.

From edit menu select define pattern. name the pattern "stars". We’ll use this pattern regularly in later steps.

Change the layer mode of stars layer to overlay.

Using custom shape tool create a preset 5 pont star shape.

Double click the layer to open layer style window. Apply layer style with the settings shown. We’ll use star pattern that we saved in pattern overlay this time.

Create an ellipse using elliptical shape tool. Press Ctrl+T. Right Click and select Warp. Adjust the nodes to get the shape as shown.

Enable “subtract from shape area” at the top bar. Create a rectangle using rectangular shape tool.

Enable add to shape area from the top bar. Create a rounded rectangle using rounded rectangle shape tool.

Double click the layer to open layer style window. Apply settings as shown.

Create a circle using elliptical shape tool. Warp it and place as shown. Enable add to shape area from the top bar. Create two small ellipses for the ears. Apply the same layer style we used in previous step.

Create a rectangle for the body using rectangular shape tool. Enable add to shape area from the top bar. Create a rectangle for the hand using rectangular shape tool.

With add to shape area still enabled create an ellipse for the shoulder and then create a rectangle for the arm. Place them as shown.

Create a shape as shown using pen tool.

Create a new layer. Select brush tool with 2 pixels settings. Now create eyes and lips.

Create a line using line shape tool. Place it as shown. Create two stars using custom shape tool . Place the star shapes on the each corner of the line.

Select all the character layers and duplicate it. Press Ctrl+T. Right click and select Flip Horizontal and place on the other side.

Create a rectangle using rectangular shape tool and type the star sign name over it.

Create two more duplicates of this layer and rotate each layer further by 15°.

Select all the twirl layers. Press Ctrl+T. Right Click and select distort. Adjust the nodes to get the shape as shown.

Open animation window. For the first frame hide three duplicates off twirl layer. Also hide one of the stars layers.

Duplicate frame. Hide the first twirl layer and unhide the second duplicate. Also hide the first stars layer and unhide the flipped one. Similarly duplicate frames and repeat the above steps to reveal the rest of the duplicates of twirl layer with stars layer hide/unhide every alternate frame.